🔴 Arm Holdings is trading 3.5% down today on AI supply constraints and valuation pressure

Arm Holdings is trading 3.5% down at $252.94 in pre-market action, extending a sharp multi-day slide from its recent record highs.

• Recent earnings revealed over $2 billion in AI CPU demand that the company currently lacks the manufacturing capacity to serve, sparking concerns over supply constraints and future margins.
• Investors are weighing whether the company's ~67x revenue valuation is sustainable amid a broader semiconductor sector pullback and increased profit-taking.